Bausch Health Companies has agreed to pay $300 million to settle an antitrust suit linked to an 800% price hike for a diabetes drug.
The suit stemmed from an alleged deal that two companies acquired by Bausch — Depomed Inc and Santarus Inc. — struck to protect its hold on the market for metaformin. According to the suit, Depomed and Santarus paid Lupin Pharmaceuticals in 2012 to delay the launch of a generic version of the diabetes drug until 2016. In 2015, Bausch, called Valeant Pharmaceuticals at the time, jacked up the price of the drug from $5.72 per tablet to $51.
Depomed has already settled a related suit and Lupin is due in court in October.
Lawyers for the plaintiffs said that if the settlement is fully approved, it will be one of the largest so far in the series of “play for delay” suits that have swept through the generics industry in recent years.
